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E 1-3 Prepare stockholders’ equity section The stockholders’ equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands):   Pop Son Capital stock, $10 par $3,000 $1,600 Other paid-in capital   400   800 Retained earnings 1,200   600 Stockholders’ equity $4,600 $3,000 On January 2, Pop issued 300,000 of its shares with a market value of $20 per share for all of Son’s shares, and Son was dissolved. On the same day, Pop paid $10,000 to register and issue the shares and $20,000 for other direct costs of combination. Required: Prepare the stockholders’ equity section of Pop Corporation’s balance sheet immediately after the acquisition on January 2. (Hint: Prepare the journal entry.)

E 1-3 Prepare stockholders’ equity section The stockholders’ equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands):   Pop Son Capital stock, $10 par $3,000 $1,600 Other paid-in capital   400   800 Retained earnings 1,200   600 Stockholders’ equity $4,600 $3,000 On January 2, Pop issued 300,000 of its shares with a market value of $20 per share for all of Son’s shares, and Son was dissolved. On the same day, Pop paid $10,000 to register and issue the shares and $20,000 for other direct costs of combination. Required: Prepare the stockholders’ equity section of Pop Corporation’s balance sheet immediately after the acquisition on January 2. (Hint: Prepare the journal entry.)

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 5SEB: STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Mel Brothers stockholders equity...
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E 1-3 Prepare stockholders’ equity section

  • The stockholders’ equities of Pop Corporation and Son Corporation at January 1 were as follows (in thousands):

     

    Pop

    Son

    Capital stock, $10 par

    $3,000

    $1,600

    Other paid-in capital

      400

      800

    Retained earnings

    1,200

      600

    Stockholders’ equity

    $4,600

    $3,000

    On January 2, Pop issued 300,000 of its shares with a market value of $20 per share for all of Son’s shares, and Son was dissolved. On the same day, Pop paid $10,000 to register and issue the shares and $20,000 for other direct costs of combination.

    Required:

    Prepare the stockholders’ equity section of Pop Corporation’s balance sheet immediately after the acquisition on January 2. (Hint: Prepare the journal entry.)

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